This is a subscriber post done in November, it is still very relevant today. Use in conjunction with this post here.
“And again, I have two approaches, the one I use more often is to buy into the selling waves, there is another approach also, discussed once more last week. This business is 100% about hard work. There is nothing stopping anyone from working hard at this – if you choose to – if you choose to. “Talent” “intelligence” “gut feel” has nothing to do with this. Yesterday, 11/7, was a follow thru day, often there is a reaction from that, the volume needs to abate with any reaction. The 60 minute opening bar, and good close with green volume, that is then when to start believing the follow thru day is likely, on an intraday basis”:
As you can see in the last follow thru day – and what did I say AT THE TIME about the volume? – did it abate, or not? I made it easy for you to figure out, look at the big arrows on the chart, ignore the other stuff on there for now:
As discussed ahead of time a few weeks ago – there will be more retesting of the lows, possibly a spring. So again, a better overall individual stock environment. More time sets it up better. SPY 281 still the big res.
I left this comment earlier, may be helpful:
The markets and how they operate are generally exactly the same as when I started in the 90s. Back then people blamed program trading and on-line day traders for messing up markets, today well you know what people are saying. But the indexes themselves are much more prone to “false bkos” – yes springs and upthrusts. And yes I use those for options opportunities. Individual stocks, when someone really works hard and hones their ability to analyze the POTENTIAL PRE-BKO technical situations, then there will be less false bkos – FOR THEIR TRADING. More trending moves. The RIGHT stocks trend much better than the indexes. Since I started in this business as not believing in bkos, either way, and using those to enter positions on the other side, I have always struggled with individual stock bkos, but have vastly improved over the years. Also, springs – the probabilities vastly improve when the trend is up already. Again, nothing more important than the ability to recognize the trend.